[Asia Economy Reporter Inho Yoo] Recently, public-supported private rental apartments that closed their subscription periods recorded high application rates as expected. Amid the jeonse crisis causing difficulties for the middle class, applicants are flocking to private rentals, which have relatively lower burdens and better conditions.
According to the industry on the 5th, HDC Hyundai Development Company's public-supported private rental housing 'Gocheok I-Park,' which closed subscriptions on the 1st, received 11,510 applications for 2,205 units, recording an average competition rate of 5.22 to 1.
This complex consists of 746 apartment units and 1,459 residential-commercial mixed-use units. In the subscription results, 5,814 people applied for the apartments, showing an average competition rate of 7.79 to 1.
By housing type (exclusive area), the rates were ▲64㎡A 8.74 to 1 ▲64㎡B 2.87 to 1 ▲64㎡C 3.13 to 1 ▲64㎡D 2.78 to 1 ▲64㎡E 6.16 to 1 ▲64㎡F 3.42 to 1 ▲79㎡A 22.66 to 1 ▲79㎡B 12.53 to 1. In particular, the youth special supply for the 79㎡A type attracted 607 applications for 11 units, reaching a competition rate of 55.18 to 1.
The residential-commercial mixed-use units had an average competition rate of 3.9 to 1, somewhat lower than the apartments. The 79㎡I and E types had the highest competition rates at 15 to 1, and the A type of the same area also reached double digits with 12.99 to 1.
On the 3rd, Daewoo Engineering & Construction's public-supported private rental apartment 'Unseo Station Prugio The Sky' in Yeongjong Sky City, Incheon, closed subscriptions with an average competition rate of 2.76 to 1. A total of 3,996 people applied for 1,445 units.
By supply type, the general supply recruited 1,154 units with 2,959 applicants, recording an average competition rate of 2.56 to 1. Special supplies saw 735 applications for 146 youth units at 5 to 1, 206 applications for 88 newlywed units at 2.34 to 1, and 96 applications for 57 senior units at 1.68 to 1.
The most fiercely contested housing type was the 84E㎡ exclusive area, with 61 applicants for 2 units, recording the highest competition rate of 30.5 to 1. Following were the 74㎡B youth special supply at 5.61 to 1, 84㎡D youth special supply at 5.5 to 1, and 84㎡D newlywed special supply at 4.7 to 1.
The popularity of these private rental apartments appears to stem from the fact that, amid the deepening jeonse crisis caused by the implementation of the Lease 2 Act, they offer long-term stable housing.
Residents can live for up to 8 years, and upon renewal after 2 years of residence, rent increases are limited to within 5%. The initial rent is set at 95% of the market price for general subscriptions and 85% for special supplies. The absence of a need for a subscription savings account and no restrictions on re-winning are also cited as reasons.
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